Investors who own International Business Machines Corp (IBM) should be on high alert in the coming weeks. Based on the stock chart, International Business Machines is close to a major breakdown that would take the stock to $122.50, then $108.00. Any daily stock price close below $132.50 will trigger selling pressure as a trend line would break. This is a classic technical chart level. As long as price keeps above that level, investors can remain in International Business Machines.
There is also a major head and shoulder pattern that signals a major downside move on any break of that same trend line. The fact that two stock chart patterns reside within one is additional confirmation that this pattern will play out in the coming months.
Investors should be fully aware, the likelihood of a breakdown is at 85% based on the two factors mentioned. As a swing trader or options trader, look to short the stock or buy put options on any break of this level. Easy profits should follow.